RIO DE JANEIRO--(BUSINESS WIRE)--Brazilian companies will face a challenging environment in 2014 due to
the national economic slowdown, according to a new Fitch Ratings report.

Fitch projects 1.9% and 2.5% of Brazilian GDP growth for 2014 and 2015,
respectively, in comparison to the 4.3% averaged between 2007 and 2011.

'While these growth levels are anemic relative to prior years, the 25
largest Brazilian issuers rated by Fitch are overall well-positioned to
withstand a slowdown in demand, due to their strong liquidity profiles,'
said Mauro Storino, Senior Director at Fitch.

Fifteen of the 25 companies are rated 'AA(bra)' or above. If the five
entities rated 'AA-(bra)' are included, the percentage of companies
rated 'AA-(bra)' or above represents 80% of the largest 25 issuers in
the local debenture market.

The companies' overall credit quality improved during the past 12 months
with more than 50% experiencing a positive rating action, while only 16%
suffered from a negative rating action.

Brazil's local capital market has a track record of being restrictive to
companies rated below the 'A(bra)'category, and Fitch does not foresee
any changes in the market's appetite for riskier credits in the short
term. The agency expects a higher number of issuances in the first
semester of 2014, as companies strengthen their balance sheets ahead of
the election.

Fitch also expects lower performance of Banco Nacional de
Desenvolvimento Economico e Social (BNDES) in the concession of
long-term financing, which should be primarily destined to
infrastructure projects.

Almost 30% of the largest 25 Brazilian issuers are in the power sector,
which is in a distressed scenario due to low hydrological conditions and
high energy spot prices. Companies related to the profitable
transportation sector represent an additional 20% of the portfolio.

The full report, titled 'Fitch 25 Brazil', is available on the Fitch
Ratings web site at www.fitchratings.com.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.